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[Sep 2005]
Lafarge First Half Financial Figures
Key figures for Lafarge's first half 2005 performance were: like-for-like sales up 6%; current operating income on a like-for-like basis down 9.3% against a 33% increase in 2004 compared to the previous year; net income down 17.7%; earnings per share of 2.12; and Group net debt down 5.3%.
Bernard Kasriel, Lafarge's CEO, said: "These results, weaker in comparison with a particularly strong first half in 2004, derive from difficult market conditions experienced in the first half in Brazil, Malaysia, South Korea in Cement, and in Germany across all our businesses.
"However, we expect a strong second half 2005, with favorable trends of our volumes overall, further price improvements in cement and aggregates, a return to a normal competitive environment in Malaysia and a stabilization of the situation in South Korea. We remain concerned with the continued, stronger than expected, deterioration of the German construction market. We therefore expect the growth of our full year like-for-like current operating income to be robust, at the low end of a 6 to 8% range previously stated.
"Our unprecedented capacity expansion program is moving forward particularly in Cement and Gypsum to support market growth, and will start to deliver in 2006. Our recent move in China by partnering with Shui On is another step forward to capture high growth market opportunities."
In its sectoral analysis, Lafarge revealed that Roofing saw its current operating income fall by 63.9%, from 67 million to 24 million. The renewed decline in the German construction market resulted in a loss being recorded in the German operations, despite extensive restructuring, causing most of the sharp fall in this division's results.
France, the UK and Malaysia saw slight declines while further growth was recorded in North America.
The company said that no sign of stabilization of the German construction market is expected before the end of the year.
Lafarge's Roofing division holds a top ranking position in the world league table, as do the group's other businesses - Cement, Aggregates & Concrete and Gypsum. Overall, Lafarge employs 77,000 people in 75 countries and posted sales of 14.4 billion in 2004.
ENDS